1. “Solid Waste Management: Line Item Expense or Resource Management“
Presented by
Mike Carnes
Vice President
Solid Waste Solutions Corp
April • Tampa, FL
In this time of budgetary shortfalls, installations such as yours are looking for ways to properly manage waste disposal.
Today we are going to talk about the four parts of waste minimization and recycling.
These 4 parts include, the current problems encountered with waste and recycling, solutions for better waste and recycling, successful ways to get started and finally we’ll talk about “best practices” as they relate to a well-run waste and recycling program.

2. Typical Perception Just Another Line Item Expense
It’s Only Garbage!
It’s Minor Compared To The Big Picture
If It’s Not Broken, Don’t Fix It
Three Bids, “What More Do We Need?”

3. Hard Costs vs. Soft Costs
Budgetary Constraints
Number One Challenge Today
Hard Costs vs. Soft Costs
Get Invoice  Pay Bill
Time, Space And Labor

4. Back to Basics Waste Audit Remember Unique Requirements and Mission
Setting Goals High (100%)
Making Waste and Recycling A Priority

5. Patience 3-5 Year Commitment From Management
Long Term Success Depends On Holistic Approach
Culture Change
Training And Education

6. Elements of Successes
Comprehensive Insight Into Your Current Waste And Recycling Program
“Waste” As An Asset – NOT A Liability
Baseline For Measuring Success
Success does not arrive after implementing one well thought out plan. Ongoing maintenance, tweaking, handholding, and piloting of new ideas are cornerstones to ensuring long-term success.
Key to buy-in of management
Building confidence within organization
Performance based contracting
Shared Savings

7. Best Practices (Performance Based Contracting)
Proactive Vs. Reactive
Resource Management
Down Stream And Up Stream Management

8. OFPP Policy Letter 91-2 Dated April 9, 1991
Agencies shall use performance-based contracting methods to the maximum extent practicable when acquiring services
Statement of Work
Describe the work in terms of “what” is to be the required output rather than “how” the work is accomplished
Quality Assurance
Develop formal, measurable performance standards and surveillance plans to facilitate assessment of a contractor’s performance
Preference for using performance incentives and deduction schedules

9. Further Guidance
Memo, dated Oct. 25, 1999, Under Secretary of Defense Acquisition and Technology
- Training for Performance Based Service Acquisitions
Memo, dated April 5, 2000, Under Secretary of Defense Acquisition and Technology Performance Based Service Acquisitions
- Requires 50% of the service acquisitions to be performance based by
the year 2005 – measured both in dollars and contract actions
Memo, dated March 9, 2001, Office of Management and Budget,
- Directed all other agencies to use PBC on at least 20% of all service
contracts > $25,000 in FY 2002

10. Waste Management and Recycling
Performance-Based
Waste Management and Recycling
Task
Task 1
Reduce
annual waste
Costs
Task 2
Increase recycling
Standard
Waste costs will
not exceed the
previous 12-month
baseline thus the
client will
receives a reduction
in annual waste
expenditures
To meet or exceed
waste diversion
MOM
AQL
None
Method
Monthly waste bill
Review contractor
prepared measurement
reports
Periodic inspections
to ensure compliance
with baseline audit
Tonnage reported by
QRP
Incentives
Contractor
receives %
of savings
from
12-month
Baseline
See above
(Acceptable
Quality
Level)

11. Implementation Build Slowly Towards Goals Incentives
Work With / Involve Key People And Departments
Communicate Upfront That Change
Is Coming And Why
Provide Basic Information To All

12. Case study: Evanston, IL Northwestern Healthcare Hospitals 3 Locations
Type Contract – Performance Based
Services Provided
Waste Audit
After Consultation With Client Implemented Changes
Changed Processes And Practices In Waste Disposal Services And Recycling
Right Sized And Optimized Waste Disposal And Recycle Services
Provided Education And Training For Staff Of Over 4K
Savings – Over $400,000 Per Year

13. Case study: Metcalf Federal Building GSA, Chicago, IL
Type Contract – Fixed Price
Services Provided
Waste Audit
After Consultation With Client Implemented Changes
Changed Processes And Practices In Waste Disposal Services And Recycling
Right Sized And Optimized Waste Disposal And Recycle Services
Provided Education And Training For Staff Of Over 2K
Hard Cost Savings – Over $25,000 Per Year
Soft Costs Savings – Over $100,000 Per Year
As A Result Won White House Closing the Circle Award

14. Summary Back To Basics Buy-in Of Command Key To Success
Building Confidence Within Organization
Culture Change
Performance Based Contracting

15. For more information, please contact
Thank You
For more information, please contact
MIKE CARNES
Solid Waste Solutions
1560 Sherman Avenue
Suite 860
Evanston, IL C